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Tuesday, January 19th, 2021

Government proposing to transmit social organizations to competitive environment

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by December 12, 2016 General

Minister of Finance Bakhyt Sultanov reported at a regular meeting of the Government about the work being held on republican and municipal property and quasi-public enterprises entering competitive environment under Yellow Pages Rule.

Social organizations can be transmitted to the competitive environment at the 2nd stage of commercializing the state-owned enterprises.

According to the Minister, 5,991 organizations will remain in state property after the 1st stage, almost half of which � 42% – is the kindergartens. The fifth part is universities, colleges, supplementary education institutions. 13% accounts for clinics and hospitals, 8.5% – theaters, museums, cultural centers. The rest organizations include monopolies, media, veterinary establishments, etc.

The bulk is social organizations. Transferring to a competitive environment will be possible at the 2nd stage, after addressing the commercialization issue and completing the universities related reforms. The number of state-owned enterprises will also be greatly reduced after introducing a new organizational and legal form named budgetary institution. Further transmission via PPP line will strengthen the private business, B.Sultanov noted.

After the 2nd stage of inventory, nearly 1,400 organizations will be in state property. As the speaker noted, the business community has already expressed interest in obtaining the trust management of kindergartens.

According to the Minister, the measures taken will improve the effectiveness of budget expenditures and state assets management.

Source: Government of the Republic of Kazakhstan

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